Brazil's central bank today (Wednesday) cut its benchmark interest rate from 13.75% to 12.75%, its first rate cut in 16 months and a move to guard the country's economy from the global financial crisis.

In the past year, it rained pretty hard on Brazil's burgeoning economy. Its Bovespa stock index is been halved since hitting a record high in May. During that fall, Brazil's currency, the real, tumbled more than one-third from its nine-year high.

In the fourth quarter, commodity prices and consumer demand continued falling, leading to a loss of 654,946 government-registered jobs in December – the worse monthly loss since the government began tracking jobs data in 1999.

There is another little-understood phenomenon that cushions the blows for emerging economies: Intra-emerging market trade has become increasingly important. By now everybody understands that iron ore from Brazil and coal and oil from other emerging markets is flowing into China in order to fuel China's massive infrastructure buildup and growing consumer demand.

Both are run by a superb team of experienced managers, especially adept at controlling the till in rough economic waters, Marquez said.

"The policies, run day to day by a sophisticated technocracy led by top economists and international bankers, many of which held top positions in leading international banks, have allowed Brazil to move forward," Marquez said. "Hence, Brazil is by far my favorite Latin American play for 2009."

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